Allied Venture Partners

Hello Partners,

As a current or prospective partner, this newsletter provides exclusive insights into our investment strategy, portfolio companies, and industry trends.

Thank you for your continued trust and support,

Matt Wilson

Founder & Managing Director | Allied Venture Partners

Not an LP? Click here to join the Allied Venture Partners syndicate.

Team Updates

• Our core team includes Steve, Melinda, Brendan, and Colton.

• The Allied Scout and Advisory programs continue to expand with several new members each week, providing quality diversified deal flow from across Canada and the United States. Thank you to all those who have participated.

New Deals

• We launched a new investment opportunity to syndicate LPs last week. Please check your inbox for the invite.

• We have two more opportunities that I aim to have out in the coming weeks. Stay tuned.

Portfolio News

• Vint’s new QSBS Rollover product is experiencing remarkable growth and is quickly emerging as their fastest-growing product line.

• Rook grew by 55% in Q1, and the team continues to onboard new clients at a rapid pace. They are willing to accept some additional capital to support their growth. If you or any funds in your network would like more information, please let me know. 

• Tiliter successfully integrated LLMs into its product portfolio, expanding its capabilities beyond supermarket product recognition to include clients in the mining and logistics sectors. This marks an important step in positioning Tiliter as a multi-industry AI company with high-value, scalable computer vision solutions. 

• Thanks again Venture Summit for inviting me to speak earlier this month in the Valley.

Industry Insights

After an intensive week in the Valley speaking with over 100 founders, developers, investors, and industry leaders, I’ve distilled my top five most powerful insights and key themes shaping the current venture capital landscape.

1) There are no moats at the application layer

The software ecosystem is witnessing a fundamental shift in how defensibility is achieved. Applications alone no longer provide sufficient moats as software development becomes more accessible to non-technical teams.

The consensus among founders and investors alike is that true defensibility now requires a platform strategy—creating ecosystems that enable consumers and enterprises to build upon.

[Since day one, this platform-first mentality has been the core of our investment thesis and continues to drive our investment decisions.]

2) Vibe coding is real

"Vibe coding"—the AI-assisted, intuitive programming approach—has crossed from buzzword to practical reality. Platforms like Cursor, GitHub Copilot, and Replit are democratizing access to software development at an unprecedented rate.

Even veteran developers who initially dismissed the concept are now incorporating these tools into their daily workflows as the technology improves. This shift is accelerating development cycles and changing hiring patterns across technical teams.

3) Tariffs are very unpopular

Recent tariff policies have introduced significant economic uncertainty into the startup ecosystem. Many early and growth-stage companies already feel the adverse effects on their supply chains, international expansion plans, hiring strategies, and overall operating costs. This uncertainty is compelling founders to revisit their runway calculations and preserve capital.

4) LPs want venture beta, and GPs are giving it to them

I observed two notable trends among institutional LPs:

1. Capital continues to concentrate into the usual brand-name late-stage funds, even if it means sacrificing the prospect of higher returns. This perceived brand-name safety enables LPs to index the VC market.

2. Large multi-stage funds are strategically reducing their early-stage investment exposure, operating under the thesis that truly exceptional companies will eventually filter up for later-stage rounds anyway. Smaller seed funds act like scouts, while multi-stage firms rely on their brand reputation to pick and win growth round allocations.

5) IPOs are back on hold

The anticipated improvement in the IPO market appears to be stalling. Multiple companies that had been preparing for public offerings are now pausing their plans amid increasing tariff and economic uncertainties.

This development further constrains the VC liquidity window that had only recently begun to reopen, potentially extending hold periods for portfolio companies and LPs.

As a reminder, our Core Investment Values since Day 1:

Read our investment thesis one-pager, available here.

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